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Avoiding unintended BIK on company fleet vehicles

Running a business from home and avoiding unintended BIK on fleet cars

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I am looking at setting up a tour operator who would offer customers road trips such as along the North Coast 500 in Scotland. The business would package the hire of company owned self-drive vehicles with hotels, tours (e.g. boat tours), activities (e.g. kayaking) and other related services. 

Customers would self-drive company owned vehicles for the duration of the trip and have a choice of 4x4 vehicles or more exotic vehicles like sports cars. Customers have the choice of self-guided or guided tours, and in the latter one of our directors or employees would drive a lead vehicle from the fleet and guide customers following in one of the other vehicle. 
 

We do not intend to allow any personal use of the vehicles when not on hire. When not on hire the vehicles will only be driven for business purposes such as delivering for maintenance, preparation or provisioning. A full log of mileage and purpose will be kept. All directors and employees have their own personal vehicles. 

However, we would like to run the business from our home as we have lots of land and outbuildings perfect for this use, which is both convenient and low cost as we establish the business. I am worried about HMRC claiming that the fleet is available for personal use. 
 

I would like to know what we need to do to prevent any inunintended classifications of the fleet as with personal use and subject to Benefit in Kind tax for the directors or employees.

Replies (4)

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By paul.benny
09th Mar 2022 09:57

There is a VAT case reported here which may be helpful to both bik issues and recovery of input tax.

https://www.accountingweb.co.uk/tax/business-tax/vat-claimable-on-family...

Where the tours will be guided, have you considered the need for private hire licensing? This may be required and it may also help your case.

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By David Ex
09th Mar 2022 16:18

Having read the other question you’ve posted, I suggest you do nothing further until you have appointed an accountant.

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Replying to David Ex:
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By Bobbo
09th Mar 2022 17:39

Having also just read the other question, I second this suggestion.

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Replying to Bobbo:
RLI
By lionofludesch
10th Mar 2022 06:51

I third it.

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